By Maresa Nguyen, Marketing Project Manager, BDSmktg

In a sea of competition, trying to determine what motivates consumers today can leave a lot of brands and retailers scratching their heads. How do you compete with online price wars, big-budget advertising, influencer endorsements, and frequent sale seasons?

The key is to know your audience and focus on the right consumer segments. In our recent white paper, Great Consumer Expectations, we reviewed these segments to better understand what motivates each group. The results prove there is hope for all retailers and brands who focus on tailoring their message and delivery to best suit the needs of each segment.

Retail Enthusiasts

53% of consumers fall into this category. That means there is a significant percentage of shoppers who still enjoy a full-blown retail experience. This customer category is who you want to cater to when building a Consumer Experience Strategy. You can count on this shopper to attend special events, sign-up for email notifications, and shop new full-price arrivals. Read more about implementing a Consumer Experience Strategy using the D.I.C.E. Approach here.

Value Seekers

Price and product selection matters most to this subset of consumers that make up 32% of retail shoppers. That is not to say that they do not enjoy the shopping experience, but when it comes to purchasing, price is going to be the key factor. These are your bargain hunters who want to feel like they have made a smart purchase decision by not paying full price. In a recent Consumer Reports survey on electronics retailers, 69% of online shoppers who tried to negotiate a better deal on their purchase by calling the retailer or using a chat service were successful while only 59% of in-store shoppers received a discount.  This trend is hitting the streets and savvy shoppers are using the power of the internet to access quick product and price comparisons so that they can negotiate the best deal. Creating a unified front is your best approach here. Enforcing the same pricing standards both in-store and online lets consumers know that they are going to receive the same price, advice, and promotional offers no matter where they choose to shop.

On the flip side, this shopper can be impulsive and will sometimes purchase items they do not need, simply because it is on sale. The initial sale contributes to your daily sales goal, but this opens the door for higher returns so suggesting products that will fit the customer’s need and lifestyle is always a better bet.

Retail Tolerators

This group rounds out our customer segments at 15%. These consumers seem to only tolerate retail as a means to an end. Nothing really motivates this buyer to shop other than need and they are most likely to purchase online. They are what we call purposeful shoppers. The key to winning this group over? Make the path-to-purchase journey quick and easy. This consumer views the shopping experience differently than the other two segments. Curated experiences and bargain hunting is not going to cut it here however, if you can accomplish the following then you are well on your way to moving Retail Tolerators up the chain.

• Tidy merchandising that eliminates digging and presents clear messaging is a necessity. These customers do not want to dig through bins or messy racks so merchandising your products in a neat and orderly fashion alleviates their shopping stress and makes it easier to find what they are looking for.
• Product availability and inventory management is critical. Nothing will irritate a Retail Tolerator more than finding what they need and it not being in-stock.
• Sales associates who can identify a need and respond quickly will win Retail Tolerators over. This customer doesn’t find value in small chit-chat, but they place a high value on a resourceful associate who can quickly identify their need, ask relevant questions, and provide reasonable options.
• Fast Check-Out will round out this shopper’s retail experience with a positive reminder that they can count on your store for the efficient shopping journey they desire.

In conclusion, identifying your Retail Enthusiasts, Value Seekers, and Retail Tolerators and understanding what influences their shopping patterns will allow you to make the most of every customer who visits your store or website. BDSmktg provides expert retail solutions for both brick-and-mortar and online. Let us help you build a custom retail sales strategy today!